Top Stories of 2011
By Carrie Bay | 11/15/2011
Fannie Mae and Freddie Mac have released highly anticipated guidelines for the revised Home Affordable Refinance Program (HARP). Among the key program revisions, the GSEs have eliminated or raised the loan-to-value cap, and relaxed representation and warranty stipulations.
Both government officials and market analysts have said rep and warranty waivers could spark heated competition among lenders to refinance borrowers through HARP. With the new guidelines, the GSEs laid out exactly what will be waived.
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By Carrie Bay | 10/27/2011
The industry's four largest mortgage servicers all say they will be taking part in the revamped Home Affordable Refinance Program (HARP). Bank of America, Chase, Citigroup, and Wells Fargo have each expressed their support of the program and the changes that will allow more underwater homeowners to refinance.
Government officials expect the program's revisions to expand its reach and increase competition for mortgage refinancing, with an estimated 1 million homeowners to receive assistance under the new guidelines.
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By Krista Franks and Carrie Bay | 10/24/2011
It's official. The Federal Housing Finance Agency (FHFA) has unveiled a new, revamped government mortgage refinancing program. The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP) to allow more underwater homeowners to reduce their mortgage debt by taking advantage of today's rock-bottom interest rates. Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been removed, and risk-based fees have been adjusted.
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By Carrie Bay | 10/24/2011
HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers. In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home. The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Contacts in the field say one of the most exciting features of this incentive program is that it can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home.
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By Carrie Bay | 10/19/2011
The foreclosure tide has yet to ebb, and the massive supply of bank-owned homes building over the last half-decade has taken its toll on market fundamentals.
What's become of all those properties seized by banks?
CoreLogic delved into the stats to find out. Looking at the outcomes of 355,000 properties foreclosed on in 2006, the company found that 105,000 were liquidated as REO sales to third-party buyers in six months or less, while more than 20,000 remain part of the industry's REO inventory.
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By Carrie Bay | 10/14/2011
The analysts at Barclays Capital say a "triple-dip" in home prices will likely materialize by early next year. The term "triple-dip" emerged in a Clear Capital report a couple of weeks ago, and Barclays says its analysis corroborates the idea. The research firm warns that home prices will likely slip another 6 to 7 percent over the coming winter months. That would put median prices at a new low for this cycle, in fact 3 percent below the double-dip measurement of last spring.
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By Carrie Bay | 10/11/2011
Bank of America has begun a pilot program in Florida offering extra incentive payouts to distressed homeowners who agree to and successfully close on a short sale.
Incentive payments for relocation assistance range between $5,000 and $20,000. The program is being offered on a limited basis for investor-approved, pre-offer short sales. Bank of America is calling it a pilot "test-and-learn" program, and if successful in Florida, it could be expanded to other states.
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By Carrie Bay | 09/30/2011
One in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job, according to the results of a national survey taken in mid-September. Job loss has become the primary driver of mortgage defaults. With the state of the labor market posing one of the biggest obstacles for struggling homeowners and their lenders, a number of programs at both the national and state level have been launched to assist unemployed homeowners, but so far the expected results haven't materialized.
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By Carrie Bay | 07/28/2011
The nation's leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure - both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.
Wells Fargo has increased its financial relocation assistance to as much as $20,000 in states where the foreclosure process is lengthening. Bank of America is now allowing agents to submit a new backup offer for a short sale property if the original buyer has walked away.
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By Carrie Bay | 05/16/2011
The Michigan Court of Appeals has ruled that MERS does not meet the requirements under state statute to foreclose by advertisement because the company does not own any interest in the debt.
The judgment does not apply to judicial foreclosures conducted by MERS, but observers warn the decision could void thousands of foreclosures in the state, including properties that have already been sold to new buyers. Local reports say title companies are canceling closings on some bank-owned homes in light of the ruling.
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